Sarb official warns of risk in RSA sovereign bond holdings
Banks must consider interest rate risk when buying South African government debt, head of stability says
Banks holding significant amounts of South African government bonds must consider the interest rate risks on their balance sheets, the head of financial stability at the South African Reserve Bank (Sarb) has argued.
In a sideline interview on May 20 during Central Banking’s London training series, Nicola Brink noted that South Africa’s banking sector as a whole had an exposure of around 15% to the country’s government bonds, a figure she considered “fine”.
“However, there are a couple of banks
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